An investor buys a 90-day promissory note at a yield of 9.120% p.a. and sells it 30 days laterat a vield of 8.925% p.a. What effective annua rate of return did the investor make?

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Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.